Fox Corporation to acquire sreaming giant Roku in landmark $22 billion deal
Fox Corporation agreed to acquire Roku, Inc. in a cash-and-stock deal with enterprise value about $22 billion. Roku shareholders will get $96.00 cash plus 0.9693 Fox Class A shares per Roku share, implying $160.00 per share and a 34% premium. Fox will own about 73% and Roku 27%. Deal needs approvals and is expected to close in 1H 2027.
How this was made
The 30-second read
Why it matters
The definitive agreement, explicit per-share consideration, premium, ownership split, and required DOJ/FCC approvals provide actionable inputs for deal-spread trading and risk management through the regulatory and shareholder-vote milestones.
Market read
This is a definitive, large-cap M&A announcement with concrete economics and a clear regulatory path, making it a primary catalyst for both FOX and ROKU.
What to watch
Execution risk post-close (integration of Roku’s platform with Fox’s FAST and sports rights) and potential renegotiation of terms if regulatory conditions tighten.
Background
Fox and Roku are combining Fox’s live news and major sports rights with Roku’s connected-TV distribution and advertising infrastructure, with Tubi as the FAST component.
Ticker impact
Fox agreed to acquire Roku in a cash-and-stock deal valued at about $22B, including $12B bridge financing and DOJ/FCC approvals.
Likely positive on deal certainty, but volatility around leverage and regulatory risk.
The article discloses definitive acquisition economics ($96 cash plus 0.9693 shares), ownership split, and $12B bridge financing, which can re-rate risk and capital structure expectations.
Roku will be acquired by Fox for $96 cash plus 0.9693 Fox Class A shares, implying $160 per share and a 34% premium.
Supportive for the stock toward the implied offer value, with pullbacks possible on regulatory or closing-condition headlines.
The article provides definitive consideration, premium vs unaffected price, and the key closing conditions (shareholder votes, DOJ and FCC approvals).
Market effects
Combines live sports and ad-supported streaming (Tubi) with Roku’s connected-TV distribution, potentially intensifying competition in streaming advertising and platform bundling.
Primarily US-focused regulatory review (DOJ, FCC) and US viewing-share positioning.
Roku’s global household footprint (100M+) could expand Fox’s international connected-TV reach and advertiser addressability.
Counterpoint
Leverage concerns from $12B bridge financing and regulatory friction could delay or impair deal economics, limiting upside toward the implied $160 offer value.
Key entities
- acquirerFox Corporation
Entered a definitive agreement to acquire Roku in a cash-and-stock deal valued at about $22B.
- targetRoku, Inc.
Will be acquired by Fox for $96 cash plus 0.9693 Fox Class A shares per share, implying $160 per share.
- financingMorgan Stanley
Provided $12B committed bridge financing to fund the cash portion of the transaction.
- regulatorU.S. Department of Justice (DOJ)
One of the regulatory bodies whose approval is required for the deal to close.
- regulatorFederal Communications Commission (FCC)
Another required regulatory approval for the transaction to close.
